Technology companies are often exposed to unique risks because of the nature of their businesses. These companies own valuable intangible assets, such as sensitive data, software and intellectual property. As a result, they could face significant financial damage from a lawsuit, cyberattack or another unforeseen event.
What Coverage Protects Technology Companies?
Proper insurance coverage gives technology companies the financial safeguard they need to protect their intellectual property, network liability and network and cyber property security. Technology insurance is relatively new and continues to evolve as more claims are made and new exposures are uncovered. Technology insurance isn’t a singular policy but rather a combination of policies that offer the best protection for a technology company.
These are some coverages that technology companies choose to purchase for their financial protection.
- General liability insurance—This covers expenses and attorney fees resulting from injuries or property damage claims for which your business may be legally responsible.
- Cyber liability insurance—This helps companies survive data breaches and cyberattacks by paying for client notification costs, legal fees and other related expenses. The four most prominent cyber risks are privacy, security, operational, and service risks. Cyber insurance covers network security and privacy liability, network business interruption, errors and omissions and media liability.
- Errors and omissions insurance (E&O)—This can protect your business against claims that a service you provided caused a client to suffer due to a mistake on your part or because you failed to perform a service. This coverage also may include legal costs related to work performance, such as a programmer missing an important deadline.
- Workers’ compensation insurance—This coverage can help employees who experience a work-related injury or illness by providing coverage for medical care and wage replacement benefits. IT businesses with employees are required to buy workers’ comp by most states.
- Commercial auto insurance—This insurance can help cover the costs of an auto accident if you or an employee is at fault, including third-party damage and injuries in an accident, along with vehicle theft, weather damage and vandalism.
- Fidelity bonds or employee dishonesty bonds—This coverage reimburses your clients if one of your employees steals from them, including theft by electronic funds transfer.
How Is Cost Determined?
The insurance policies that technology companies choose will determine their policy cost. Other factors also impact these costs, including their services, business equipment and property, size and revenue, coverage need, and the number of employees.
How Can I Get Coverage?
To determine the types of insurance coverage that would be the most beneficial for your technology company, G&H Financial Insurance can analyze your current risks and future needs, which lets us offer you an insurance solution that gives you the best protection for your company.